Old-School Credit Card Scams Are Far From Dead
Physical credit card scams persist, costing victims billions worldwide.
1Physical mail scams persist
Despite advancements in digital fraud, physical credit card scams remain a significant threat. Criminals in Portugal, France, and Germany have mailed fake replacement cards or letters to victims, claiming their current card is about to expire. These scams often include QR codes or URLs that redirect victims to fake banking websites, where they unknowingly provide access to their real accounts.
2AI lowers scam costs
The cost of producing personalized fake cards has dropped due to AI, which can replicate designs based on images. This has made physical scams more accessible to criminals. Georg Hauer, a digital banking advisor, notes that the higher conversion rate per victim justifies the extra costs, making these scams increasingly profitable.
3EBT card skimming rises
In the US, scammers have targeted government SNAP benefits distributed via magnetic stripe-only EBT cards. The FBI reports a rise in EBT card skimming since 2021, with losses exceeding $1 billion annually. Scammers exploit the outdated technology to clone cards and access both current and future benefits.
4Mag-stripe vulnerabilities
Despite the widespread adoption of chip-enabled cards, magnetic stripe technology remains vulnerable. Non-bank ATMs and smaller merchants often expose chip-enabled cards to mag-stripe reading. Scammers install skimmers to force chip reads to fail, allowing them to clone cards and steal funds.
5Phasing out mag-stripe cards
Mastercard plans to stop issuing magnetic stripe cards by 2029, with complete phase-out by 2033. However, the continued use of mag-stripe cards for benefits and other purposes leaves many users at risk. Financial fraud remains one of the largest crime types globally, with social engineering and phishing campaigns on the rise.
6Scammers target savings
Criminals aim to empty entire savings accounts rather than stealing smaller amounts. Physical mail scams are designed to bypass digital security measures, exploiting trust to access larger sums. Georg Hauer emphasizes that these scams are not just about stealing €2,000 but emptying entire savings accounts.
7Protecting against scams
To avoid falling victim to physical scams, experts recommend avoiding card swiping whenever possible. When swiping is necessary, users should inspect terminals for signs of tampering. Applying the same skepticism to physical mail as to digital communications can help prevent fraud.
8Global financial fraud
Financial fraud continues to evolve, with scammers exploiting both old and new technologies. Physical mail scams and mag-stripe skimming highlight the need for vigilance. As financial institutions phase out outdated technologies, users must remain cautious to protect their assets.
Original article: Wired — Old-School Credit Card Scams Are Far From Dead